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Will I have to file for bankruptcy after my divorce?

On Behalf of | Dec 7, 2022 | Bankruptcy & Divorce

Many divorcees in Miami cite financial struggles as a contributing factor to their divorce. If you are struggling financially before your divorce, it is likely your situation can be compounded by the community debt you are responsible for after your divorce.

Marital debt and bankruptcy

Community debt in Florida includes any debts taken on by either spouse while married. Community debt can include credit card debt, a mortgage or an auto loan. You and your spouse will divide this debt when you divorce. You will be responsible for your fair share of the community debt under Florida property division laws. This debt may be allocated to you regardless of who took out the loan.

What does this mean for bankruptcy?

One possible outcome is that once your divorce is complete, you will be saddled with more debt than you can afford on a single income. If you were already in a precarious financial situation during your marriage, this debt may be untenable and could force you into filing for bankruptcy.

Advantages to filing for bankruptcy

Still, there are some advantages to filing for Chapter 7 bankruptcy following a divorce. A Chapter 7 bankruptcy can be completed in a matter of months, allowing you to quickly move forward into a more stable financial and personal future.

Divorce can cause financial hardships as you adjust to living on one income. You may feel less stress if your dischargeable debts are eliminated through bankruptcy.

It is likely that your household income dropped following your divorce. This can actually be advantageous. Eligibility for Chapter 7 bankruptcy in Florida is based on being at or below the median income in the state, although the court may consider the “totality of circumstances” when deciding whether your income meets that threshold. So, having a lower household income can make it easier to qualify for Chapter 7.

Keep in mind that you will still be responsible for paying child support and spousal support, even if you are in arrears, because these debts cannot be discharged through bankruptcy.

You may initially feel hesitant to file for bankruptcy following your divorce but doing so may be the best way for you to bounce back financially, allowing you to move forward post-divorce.


Kingcade & Garcia | A Miami Law Firm